Aged care – correction to resident status 065-22022446

This document outlines permanent residential care - corrections to resident status associated manual calculations and letters.

Historical SPARC process

The System for the Payment of Aged Residential Care (SPARC) is the legacy aged care payment system for residential care. SPARC was a view only system from 11 August 2022 and decommissioned in 2023.

To view the legacy SPARC process, see the historical version.

Correction to care recipient's resident status

The care recipient's resident status (for example, low means or not low means) determines the fee structure including accommodation costs. It is set based on the care recipient's circumstances on the date they enter permanent care. See Aged care means assessment.

Once the resident status is determined and fees set in the Aged Care Staff Portal (ACSP), initial fee letters are issued. Initial fee letter advises the care recipient of their aged care fees which include accommodation payment arrangements.

See Aged care letter codes and descriptions for details of letters sent.

Fee arrangements by resident status

Pre 1 July 2014 Resident Statuses

Concessional or Fully Supported

Basic daily care fee (BDF)

Assisted or Partially Supported

Basic daily care fee (BDF)
Accommodation Bond or Daily Accommodation Charge - depending on level of care or extra service status
Income tested care fee (ITF or ITCF) - depending on income

Neither Concessional or Assisted or Not Supported

Basic daily care fee (BDF)
Accommodation Bond or Daily Accommodation Charge - depending on level of care or extra service status
Income tested care fee (ITF or ITCF) - depending on income

Post 1 July 2014

Low means status

Basic daily care fee (BDF)
Accommodation contribution (MTC or AC), and
Means tested care fee (MTCF or MTF) for care recipients whose means exceed the thresholds after date of entry

Not low means status

Basic daily care fee (BDF)
Accommodation payments, and
Means tested care fee (MTCF or MTF) - depending on means (income and assets)

Correction to care recipient's resident status - post 1 July 2014 assessment scheme

If a reassessment of income and/or assets from the date of entry into permanent care, changes the care recipient's resident status, the Aged Care Payment System:

adjusts the fees for the care recipient
calculates any refunds due at the next review
adjusts subsidies and supplements paid to the provider in their monthly claim
automatically sends new initial fee letters

Resident status change from low means to not low means

When the resident status changes to not low means due to reassessment of income and/or assets, the care recipient is not entitled to any assistance with their accommodation costs. The service provider is not eligible to receive an accommodation supplement payment for that care recipient.

When the change in resident status is identified, the Aged Care Payment System will:

update the Means tested care fee (MTCF) back to date of entry in line with the care subsidy reduction to zero and the updated income and assets
issue a new initial fee letter to the care recipient and provider with the corrected resident status and updated fees:

the care recipient is liable to negotiate their own accommodation costs

adjusts subsidies and supplements paid to the provider
no refund of the previous accommodation contribution will be generated

Resident status change from not low means to low means

When the resident status changes to low means due to reassessment of income and/or assets, the care recipient may be eligible to receive assistance with their accommodation costs from their date of entry.

When the change in resident status is identified the Aged Care Payment System will:

update the accommodation contribution back to date of entry
end date the Means tested care fee (MTCF) if applicable
issue a new initial fee letter to the care recipient and provider of the corrected resident status and updated fees
adjusts subsidies and supplements paid to the provider
refund any overpaid Means tested care fee (MTCF) in the next review

Correction to care recipient's resident status - pre 1 July 2014 assessment schemes

If a new or reassessment of assets (effective on the date of entry into permanent care), changes the care recipient's resident status, the Aged Care Payment System:

requires a manual update of the changed assessed assets amount
adjusts any accommodation charge for a care recipient
adjusts subsidies and supplements paid to the provider in their monthly claim from the month the change updates in the Aged Care Payment Systems. For example, where a resident status correction occurs on 15 May, the subsidy and supplement adjustment will occur from 1 May. This is when the May claims is lodged from 1 June onwards
may automatically send a letter advising of daily accommodation charge changes

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